Oriola-KD Corporation Stock Exchange Release 24 April 2014 at 8.30 a.m.
Oriola-KD Corporation's Interim Report for 1 January-31 March 2014
Financial performance January-March 2014
* Net sales decreased by 3.0 per cent to EUR 593.9 (612.3) million
* EBITDA excluding non-recurring items increased by 97.4 per cent to EUR 14.6
(7.4) million
* EBITDA was EUR 13.6 (7.4) million
* Operating profit excluding non-recurring items was EUR 8.1 (2.3) million
* Operating profit was EUR 7.1 (2.3) million
* Net cash flow from operations was EUR -25.8 (-26.1) million
* Profit for the period totalled EUR 2.6 (0.7) million and earnings per share
were EUR 0.02 (0.00)
Key figures 2014 2013 Change 2013
EUR million 1-3 1-3 % 1- 12
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Net sales 593.9 612.3 -3.0 2,598.5
Retail business 215.9 171.7 25.8 809.9
Wholesale business 466.7 485.3 -3.8 2,026.0
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EBITDA excluding non-recurring items 14.6 7.4 97.4 53.2
EBITDA 13.6 7.4 83.7 46.7
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Operating profit excluding non-recurring items 8.1 2.3 250.9 29.0
Retail business 7.0 3.8 86.2 21.1
Wholesale business 2.6 0.2 1,146.1 14.2
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Operating profit 7.1 2.3 206.7 21.0
Retail business 6.3 3.8 68.1 13.7
Wholesale business 2.2 0.2 983.7 13.6
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Operating profit % excluding non-recurring items 1.4 0.4 1.1
Retail business 3.2 2.2 2.6
Wholesale business 0.6 0.0 0.7
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Operating profit % 1.2 0.4 0.8
Retail business 2.9 2.2 1.7
Wholesale business 0.5 0.0 0.7
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Profit for the period 2.6 0.7 275.8 5.8
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Earnings per share, EUR 0,02 0,00 231.5 0,04
Net cash flow from operating activities -25.8 -26.1 29.8
Return on equity (ROE), % 3.6 0.9 2.0
Gearing, % 56.9 12.6 65.3
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Outlook for 2014
Oriola-KD estimates that net sales and operating profit excluding non-recurring
items will increase compared to 2013 actual.
President and CEO Eero Hautaniemi's comments regarding the interim report:
"The Group's operating profit was positively supported by improved profitability
from both segments in Pharmaceutical Trade Sweden. After closing the acquisition
of Medstop in June 2013 we have since established ourselves as one of the main
players in the Swedish pharmacy market. After the opening of a new pharmacy in
March, we now have 300 pharmacies, in total, operating under the Kronans Apotek
brand. Kronans Apotek's market share in the Swedish pharmacy market is at the
moment approximately 21 per cent according to the company's estimate. The
Swedish wholesale business' profitability was strengthened by the efficiency
programme that was started in the third quarter of 2013.
Russia's weakening economy and continued intense competition contributed
negatively to our Russian businesses' net sales and profitability during the
first quarter. Despite the efficiency measures already undertaken, the Russian
wholesale business, in particular, was clearly behind the goals set. The
continued slowdown in Russian economic growth weakened the purchasing power of
the consumers and this negatively affected the Russian retail business' net
sales and profitability during the first quarter. As a part of the profitability
improvement actions initiated in 2013 in Russia, principal agreements which are
either commercially unprofitable or unfavourable for Oriola-KD have been re-
negotiated. The restructuring initiatives affecting the Russian businesses
during the first quarter will lead to the reduction of approximately 230
employees, corresponding to approximately EUR 2.5 million cost savings starting
from 2015.
The investment project for the new distribution centre in Moscow is progressing
as planned. Transfer of the operations is scheduled to begin in the last quarter
in 2014. Full production capacity will be reached by the end of the first
quarter in 2015.
We have issued a EUR 40 million hybrid bond in 20 February 2014 in order to
strengthen Oriola-KD's balance sheet."
Oriola-KD Corporation's Interim Report for 1 January-31 March 2014
The text section of this financial statements release focuses on the January-
March result. A comparison in accordance with the International Financial
Reporting Standards (IFRS) has been carried out on the figures for the
corresponding period in 2013, unless otherwise stated. The figures in this
interim report are unaudited. The figures in the tables have been rounded
independently.
2014 2013 2013
Key Figures 1-3 1-3 1- 12
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Goodwill 365.5 283.0 379.0
Equity 303.0 304.2 278.1
Interest-bearing debt, EUR million 260.5 121.9 318.8
Net interest-bearing debt, EUR million 172.5 38.5 181.5
Total assets 1,389.2 1,331.9 1,500.1
Equity ratio, % 22.4 23.4 19.2
Return on equity (ROE), % 3.6 0.9 2.0
Return on capital employed (ROCE), % 5.0 2.2 4.2
Gearing, % 56.9 12.6 65.3
Net debt / rolling 12-month EBITDA 3.3 0.9 3.9
Equity per share, EUR 2,00 2,01 1,84
Earnings per share, EUR 0,02 0,00 0,04
Average number of shares, 1000 pcs 151,142 151,161 151,157
Average number of personnel 5,099 4,838 5,135
Number of personnel at the end of the period 5,035 4,809 5,256
Gross investments, EUR million 4.8 5.8 193.7
Changes in the Group Structure in January-March 2014
There were no changes in the Group structure during the period.
The Group's net sales and result for January-March 2014
Oriola-KD's net sales decreased by 3.0 per cent to EUR 593.9 (612.3) million and
its operating profit excluding non-recurring items increased by 250.9 per cent
to EUR 8.1 (2.3) million during the first quarter. Operating profit was EUR 7.1
(2.3) million. The positive development of Oriola-KD's operating profit was
supported by the improved profitability in both Swedish operating segments. The
comparative period operating profit includes EUR 1.0 million expenses associated
with a business acquisition in Sweden.
The retail business' net sales were EUR 215.9 (171.7) million, operating profit
excluding non-recurring items was EUR 7.0 (3.8) million and operating profit was
EUR 6.3 (3.8) million. The wholesale business' net sales were EUR 466.7 (485.3)
million, operating profit excluding non-recurring items was EUR 2.6 (0.2)
million and operating profit was EUR 2.2 (0.2) million.
Profit after financial items was EUR 3.5 (0.9) million and profit for the period
was EUR 2.6 (0.7) million. Oriola-KD's financial expenses increased to EUR 3.6
(1.4) million. Earnings per share were EUR 0.02 (EUR 0.00).
Return on equity was 3.6 (0.9) per cent during the first quarter.
Reporting segments
Oriola-KD's reporting segments are Pharmaceutical Trade Finland and Baltics,
Pharmaceutical Trade Sweden and Pharmaceutical Trade Russia. Oriola-KD has
formed its reporting segments by combining its operating segments. The
Pharmaceutical Trade Finland and Baltics reporting segment comprises the Finnish
pharmaceutical wholesale business, the Consumer Health and the Pharmaceutical
Trade Baltics operating segments. The Pharmaceutical Trade Sweden reporting
segment comprises the Swedish pharmaceutical retail and Swedish pharmaceutical
wholesale operating segments. The Pharmaceutical Trade Russia reporting segment
comprises the Russian pharmaceutical retail and Russian pharmaceutical wholesale
operating segments.
Reporting segment results reported to Oriola-KD management exclude the
management fee. Segment information for 2013 has been revised to correspond with
the current presentation.
Pharmaceutical Trade Finland and Baltics
Key Figures 2014 2013 Change 2013
EUR million 1-3 1-3 % 1- 12
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Net Sales 100.8 107.5 -6.3 425.3
Pharmaceutical wholesale in Finland 79.3 86.4 -8.2 342.1
Pharmaceutical wholesale in Baltics 11.4 10.4 9.9 41.0
Consumer Health 10.2 10.9 -6.6 42.7
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Operating profit 4.8 4.2 15.5 18.8
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Operating profit % 4.8 3.9 4.4
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Number of personnel at the end of period 497 470 505
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January-March 2014
The Finnish pharmaceutical market grew by 3.1 (1.0) per cent in January-March
2014 (source: IMS Health). Oriola-KD's market share of the Finnish
pharmaceutical wholesale market was 44.7 (47.3) per cent in January-March 2014
(source: ATY).
The net sales of Pharmaceutical Trade Finland and Baltics decreased by 6.3 per
cent to EUR 100.8 (107.5) million and operating profit increased by 15.5 per
cent to EUR 4.8 (4.2) million.
Invoicing of the wholesale business in Finland was EUR 235.8 (255.1) million and
net sales totalled EUR 79.3 (86.4) million during the first quarter. Net sales
of the wholesale business in the Baltic countries were EUR 11.4 (10.4) million
and net sales of the Consumer Health business were EUR 10.2 (10.9) million. As
expected, the discontinuation of the distribution of Astra Zeneca's products by
Oriola-KD in the third quarter of 2013 reduced the net sales of the Finnish
wholesale business during the first quarter.
The EBITDA of Pharmaceutical Trade Finland and Baltics was EUR 5.7 (5.0)
million.
The profitability of Pharmaceutical Trade Finland and Baltics improved in all
the operating segments. In Finland profitability improved as a result of
continuing improvements in operating efficiency. Operations in the Baltics
developed positively during the period.
Pharmaceutical Trade Sweden
Key Figures 2014 2013 Change 2013
EUR million 1-3 1-3 % 1- 12
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Net Sales 298.5 273.7 9.1 1,194.4
Retail business 186.6 131.9 41.5 669.6
Wholesale business 195.5 183.0 6.8 743.4
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Operating profit before non-recurring items 10.0 3.2 216.0 24.1
Retail business 7.4 3.5 109.3 20.3
Wholesale business 2.8 -0.1 N/A 4.2
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Operating profit 9.4 3.2 196.7 16.4
Retail business 6.8 3.5 92.0 12.9
Wholesale business 2.8 -0.1 N/A 3.8
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Operating profit % before non-recurring items 3.3 1.2 2.0
Retail business 4.0 2.7 3.0
Wholesale business 1.4 -0.1 0.6
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Operating profit % 3.1 1.2 1.4
Retail business 3.6 2.7 1.9
Wholesale business 1.4 -0.1 0.5
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Number of personnel at the end of period 1,831 1,291 1,849
Retail business 1,551 1,014 1,573
Wholesale business 280 277 277
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January-March 2014
The pharmaceutical market grew by 0.6 (declined 4.2) per cent (source: IMS
Health) and the retail market for OTC products and traded goods grew by 1.6
(5.8) per cent (source: Nielsen) during the first quarter.
During the first quarter the net sales of Pharmaceutical Trade Sweden increased
by 9.1 per cent to EUR 298.5 (273.7) million, and on a constant currency basis,
net sales increase was 13.7 per cent. The first quarter net sales strengthened
due to the acquisition of Medstop in June 2013. First quarter retail business
net sales were EUR 186.6 (131.9) million, wholesale business invoicing was EUR
371.1 (382.8) million and its net sales were EUR 195.5 (183.0) million.
The Swedish retail business' EBITDA excluding non-recurring items was EUR 11.2
(5.8) million and EBITDA was EUR 10.6 (5.8) million during the first quarter.
The EBITDA percentage excluding non-recurring items and the management fee for
the retail business was 6.2 (4.5) per cent.
The EBITDA of the Swedish retail business was EUR 3.4 (0.5) million.
Pharmaceutical Trade Sweden's operating profit excluding non-recurring items
increased by 216.0 per cent to EUR 10.0 (3.2) million and operating profit
increased by 196.7 per cent and was EUR 9.4 (3.2) million during the first
quarter. Operating profit excluding non-recurring items for the Swedish retail
business totalled EUR 7.4 (3.5) million and operating profit was EUR 6.8 (3.5)
million. Operating profit for the Swedish wholesale business was EUR 2.8 (-0.1)
million.
At the end of March 2014, Oriola-KD had a total of 300 (222) pharmacies in
Sweden. Oriola-KD estimates that its market share of the pharmaceutical retail
market was 21.0 (13.4) per cent at the end of the period.
At the end of 2013, a programme to improve profitability was carried out in the
Swedish wholesale business, which also supported the further growth of operating
profit during the first quarter.
The share of parallel imports and generic pharmaceuticals in the Swedish
pharmaceutical market has remained high. Based on the company's estimate,
Oriola-KD's market share of the wholesale trade was 37.8 (34.5) per cent during
the first quarter.
Pharmaceutical Trade Russia
Key Figures 2014 2013 Change 2013
EUR million 1-3 1-3 % 1- 12
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Net Sales 194.6 231.1 -15.8 978.8
Retail business 29.4 39.8 -26.2 140.3
Wholesale business 170.4 194.7 -12.5 857.2
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Operating profit before non-recurring items -5.4 -3.6 -49.4 -8.0
Retail business -0.4 0.2 N/A 0.8
Wholesale business -5.0 -3.8 -30.3 -8.8
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Operating profit -5.8 -3.6 -60.6 -8.3
Retail business -0.5 0.2 N/A 0.8
Wholesale business -5.3 -3.8 -39.0 -9.1
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Operating profit % before non-recurring items -2.8 -1.6 -0.8
Retail business -1.3 0.6 0.6
Wholesale business -2.9 -2.0 -1.0
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Operating profit % -3.0 -1.6 -0.8
Retail business -1.6 0.6 0.6
Wholesale business -3.1 -2.0 -1.1
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Number of personnel at the end of period 2,707 3,048 2,901
Retail business 1,152 1,326 1,219
Wholesale business 1,555 1,722 1,683
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January-March 2014
The weak performance of the Russian businesses, caused by the declining of the
economic situation and continuing severely competitive environment, had a
negative impact on Oriola-KD's first quarter net sales and operating profit.
During the first quarter the net sales of Pharmaceutical Trade Russia decreased
by 15.8 per cent to EUR 194.6 (231.1) million, and on a constant currency basis,
net sales increase was 0.8 per cent. First quarter retail business net sales
decreased by 26.2 per cent to EUR 29.4 (39.8) million, and on a constant
currency basis net sales decrease was 11.7 (increase 8.4) per cent. Wholesale
business net sales decreased by 12.5 per cent to EUR 170.4 (194.7) million, and
on a constant currency basis net sales increase was 4.7 (7.1) per cent.
The Russian retail business' EBITDA excluding non-recurring items was EUR 0.1
(0.8) million and EBITDA was EUR -0.0 (0.8) million.
The Russian wholesale business' EBITDA excluding non-recurring items was EUR
-4.3 (-3.0) million and EBITDA was EUR -4.6 (-3.0) million.
Pharmaceutical Trade Russia's operating profit excluding non-recurring items
decreased to EUR -5.4 (-3.6) million and operating profit was EUR -5.8 (-3.6)
million. Operating profit excluding non-recurring items for the retail business
was EUR -0.4 (0.2) million and operating profit was EUR -0.5 (0.2) million.
Operating profit excluding non-recurring items for the wholesale business was
EUR -5.0 (-3.8) million and operating profit was EUR -5.3 (-3.8) million.
As a part of the profitability improvement actions initiated in 2013, principal
agreements which are either commercially unprofitable or unfavourable for
Oriola-KD have been re-negotiated. The restructuring initiatives impacting the
Russian businesses during the first quarter will lead to the reduction of
estimated 230 employees, corresponding to approximately EUR 1.3 million cost
savings in 2014 and EUR 2.5 million cost savings starting from 2015.
At the end of March 2014, Oriola-KD had 223 (239) pharmacies in the Moscow area.
Non-recurring items
A non-recurring item is an income or expense arising from non-recurring or rare
events. Gains or losses from the sale or discontinuation of business operations
or assets, gains or losses from restructuring business operations, and
impairment losses of goodwill and other non-current assets are recognised by
Oriola-KD as non-recurring items.
Non-recurring items 2014 2013 2013
EUR million 1-3 1-3 1-12
------------------------------------------------------
Pharmaceutical Trade Sweden
Restructuring costs -0.6 - -4.6
Write-off of contract-based accrual - - -3.1
Pharmaceutical Trade Russia
Restructuring costs -0.4 - -0.3
------------------------------------------------------
Total -1.0 - -8.0
------------------------------------------------------
Non-recurring items reported during the first quarter relate to restructuring
charges in Pharmaceutical Trade Sweden and in Pharmaceutical Trade Russia.
Balance sheet, financing and cash flow
Oriola-KD's total assets at 31 March 2014 were EUR 1,389.2 (1,331.9) million.
Cash and cash equivalents totalled EUR 88.0 (83.4) million and equity was EUR
303.0 (304.2) million. The equity ratio was 22.4 (23.4) per cent and gearing was
56.9 (12.6) per cent.
Oriola-KD's goodwill of EUR 365.5 (283.0) million has been allocated in
impairment testing to the cash-generating units consisting of the Group's
operating segments. Oriola-KD prepares the goodwill impairment testing twice a
year, in accordance with the timetable of its strategy and planning process. At
the end of March 2014, EUR 236.5 (119.9) million of the goodwill was allocated
to the Swedish pharmaceutical retail business, EUR 26.6 (28.5) million to the
Swedish pharmaceutical wholesale business, EUR 68.6 (90.2) million to the
Russian pharmaceutical wholesale business and EUR 33.8 (44.4) million to the
Russian pharmaceutical retail business.
At the end of March, interest-bearing debt was EUR 260.5 (121.9) million of
which syndicated bank loans totalled EUR 170.9 (-) million, commercial papers
EUR 40.6 (89.5) million, advance payments from pharmacies EUR 33.4 (31.7)
million, a contingent consideration related to Medstop-acquisition EUR 14.7 (-)
million and finance lease liabilities EUR 0.9 (0.6) million. Long-term interest
bearing-liabilities were EUR 174.9 (0.4) million and short-term interest-bearing
liabilities were EUR 85.6 (121.5) million. Interest-bearing net debt was EUR
172.5 (38.5) million. The non-recourse trade receivables sales programmes were
continued in the retail and wholesale businesses in Sweden in the first quarter
of 2014. At the end of March 2014, a total of EUR 72.6 (68.0) million in trade
receivables had been sold.
Oriola-KD's committed long-term credit facility of EUR 100.0 million and EUR
42.4 million of short-term credit account limits with banks were unused at the
end of March 2014. Oriola-KD signed a financing agreement of approximately EUR
280 million during the second quarter of 2013. The financial covenants contained
in the financing agreement are based on the ratio between the Group's net debt
and rolling 12-month EBITDA and its gearing ratio. The ratio between the Group's
net debt and the 12-month rolling EBITDA was 3.26 and the adjusted ratio in
accordance with the terms and conditions of the financing agreement, stood at
2.88 at the end of March 2014, the covenant limit in the agreement being 4.00.
The Group's gearing ratio was 56.9 per cent and the adjusted gearing ratio in
accordance with the terms and conditions of the financing agreement was 52.1 per
cent at the end of March 2014, the covenant limit in the agreement being 120 per
cent.
Financial covenants contained 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014
in the financing agreement
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Ratio between net debt and 4 4 3,5 3,5
rolling 12-month EBITDA
Gearing ratio 120% 120% 100% 100%
On 20 February 2014 Oriola-KD issued a EUR 40 million hybrid bond. The bond
bears a fixed interest rate of 7.0 per cent per annum until 20 February 2017 and
a floating interest rate thereafter. The hybrid bond has no maturity date but
the issuer is entitled to redeem the hybrid bond after three years. Interest on
the hybrid bond will be paid providing dividend is paid in accordance with the
annual general meeting resolution. If dividends are not paid, the Group will
make a separate decision regarding interest payment on the hybrid bond. Unpaid
interest is accrued and they are taken into consideration in the calculation of
earnings per share.
The first quarter net cash flow from operations was EUR -25.8 (-26.1) million,
of which changes in working capital accounted for EUR -32.5 (-30.6) million. Net
cash flow from investing activities was EUR -4.9 (-6.0) million.
Investments
Gross investments for the first quarter totalled EUR 4.8 (5.8) million and
consisted of investments related to the opening of new pharmacies, information
systems and improvements in logistics efficiency. The investment project for new
main logistics centre in Moscow is progressing according to the project plan.
The total cost estimate for the project is EUR 25-28 million, of which
investments account for EUR 15.7 million. According to the project plan,
operations will be gradually transferred to the new facilities and full
production capacity will be reached by the end of first quarter in 2015. Due to
the investment plan, Oriola-KD will record EUR 0.5 million in accelerated
depreciation in 2014.
Personnel
At the end of March 2014, Oriola-KD had a payroll of 5,035 (4,809) employees,
11 (10) per cent of whom worked in Finland and the Baltics, 36 (27) per cent in
Sweden, and 53 (63) per cent in Russia. Personnel numbers consist of members of
staff in active employment.
Administration
Oriola-KD's Group Management Team:
* Eero Hautaniemi, President and CEO
* Lars Birkeland, Vice President, pharmaceutical retail, Sweden
* Tuomas Itkonen, CFO
* Konstantin Minin, Vice President, pharmaceutical wholesale and retail,
Russia
* Jukka Mäkelä, Vice President, Development
* Teija Silver, Vice President, HR
* Kimmo Virtanen, Executive Vice President, pharmaceutical wholesale, Finland,
Sweden and the Baltics
Oriola-KD applies the Finnish Corporate Governance Code which was issued by the
Securities Market Association on 15 June 2010 and which entered into force on 1
October 2010, with the exception that the company's Nomination Committee may
also have members who are not members of the company's Board of Directors. The
purpose of this deviation from Recommendation 22 of the Corporate Governance
Code (Appointment of members to the committees) is to allow the election of
major shareholders in the company to the Nomination Committee and thus to ensure
that their opinions are heard well before the Annual General Meeting. The
Nomination Committee is a body established by the Board for the purpose of
preparing and presenting to the Board a recommendation for the proposal to be
put to the Annual General Meeting concerning the composition and remuneration of
the Board. The Corporate Governance Statement and the Remuneration Statement
for 2013 can be viewed on the company's website at: http://www.oriola-
kd.com/en/Corporate-Governance/.
Resolutions of the Annual General Meeting
The Annual General Meeting of Oriola-KD Corporation, held on 24 March 2014,
adopted the 2013 financial statements and discharged the members of the Board of
Directors and the President and CEO from liability for the financial year ending
31 December 2013.
The AGM resolved that no dividend shall be paid on the basis of the balance
sheet adopted for the financial year ending 31 December 2013.
The AGM confirmed that the Board of Directors is composed of six members.
Current members of the Board of Directors, Mr Jukka Alho, Mr Harry Brade and Mr
Per Båtelson were re-elected to the Board of Directors. Ms Anja Korhonen, Mr
Kuisma Niemelä and Mr Matti Rihko were elected as new members of the Board of
Directors. Mr Jukka Alho was re-elected Chairman of the Board of Directors. The
AGM confirmed that the fee for the term of office of the Chairman of the Board
of Directors is EUR 48,400, the fee for the term of office of the Vice Chairman
of the Board of Directors and for the Chairman of the Board's Audit Committee is
EUR 30,250 and the fee for the term of office of other members of the Board of
Directors is EUR 24,200. The Chairman of the Board of Directors receives an
attendance fee of EUR 800 per meeting and the other members receive EUR 400 per
meeting. Of the annual fee, 60 per cent shall be paid in cash and 40 per cent
shall be used to acquire Oriola-KD Corporation's class B shares for the Board
members on the NASDAQ OMX Helsinki Stock Exchange within two weeks of the
publication of the company's Interim Report 1 January - 31 March 2014.
PricewaterhouseCoopers Oy was re-elected as auditor for the company, with Mr Kaj
Wasenius APA as the new principal auditor.
In its constitutive meeting, convening after the AGM, the Board of Directors of
Oriola-KD Corporation elected Mr Matti Rihko as Vice Chairman of the Board of
Directors. The Board appointed the following from among its members: Ms Anja
Korhonen (Chairman), Mr Harry Brade and Mr Matti Rihko to the Board's Audit
Committee, and Mr Jukka Alho (Chairman), Mr Per Båtelson and Mr Kuisma Niemelä
to the Board's Remuneration Committee. The Board of Directors has assessed the
independence of the members of the Board, and determined that all members of the
Board are independent of the company and its major shareholders.
The AGM authorised the Board of Directors to decide on a share issue against
payment in one or more issues. The authorisation comprises the right to issue
new shares or assign treasury shares held by the company. The authorisation
covers a maximum of 9,500,000 Class A shares and 21,000,000 Class B shares and
includes the right to derogate from the shareholders' pre-emptive subscription
right. Pursuant to the authorisation, shares held by the company as treasury
shares may also be sold through trading on a regulated market organised by
NASDAQ OMX Helsinki Ltd. The authorisation is in effect for a period of
eighteen months from the decision of the Annual General Meeting.
The AGM authorised the Board of Directors to decide on a share issue against
payment in one or more issues. The authorisation comprises the right to issue
new class B shares or assign class B treasury shares held by the company. The
authorisation covers a combined maximum of 15,000,000 class B shares of the
company and includes the right to derogate from the shareholders' pre-emptive
subscription right. Pursuant to the authorisation, class B shares held by the
Company as treasury shares may also be sold on regulated market organised by
NASDAQ OMX Helsinki Ltd. The authorisation is in effect for a period of eighteen
months from the decision of the AGM.
The authorisation revokes all previous share issue authorisations given to the
Board of Directors apart from the authorisation given to the Board of Directors
by the Annual General Meeting held on 20 March 2013, pursuant to which the Board
of Directors may decide upon directed share issues against or without a payment
concerning no more than 1,715,000 class B shares in order to execute the share-
based incentive plan for the Oriola-KD Group's executives and the share savings
plan for the Oriola-KD Group's key personnel.
The AGM also authorised the Board of Directors to decide on repurchasing of the
company's own class B shares. The authorisation entitles the Board of Directors
to decide on the repurchase of no more than 15,000,000 of the company's own
class B shares in a proportion other than in which shares are owned by the
shareholders. The authorisation to repurchase own shares is in force for a
period of not more than eighteen months from the decision of the AGM. Shares may
be repurchased to develop the company's capital structure, to execute corporate
transactions or other business arrangements, to finance investments, to be used
as a part of the company's incentive schemes or to be otherwise relinquished,
held by the company or cancelled.
The Shareholders' proposal to the Annual General Meeting on combining of the
share classes and thereto related targeted share issue without payment as well
as amendment of the Articles of Association was rejected.
Oriola-KD Corporation shares
Trading volume of the Oriola-KD Corporation's class A and B shares during the
first quarter 2014:
Trading volume January-March 2014 January-March 2013
class A class B class A class B
----------------------------------------------------------------------------
Trading volume, million 3.4 8.5 0.6 8.3
Trading volume, EUR million 8.1 20.7 1.5 19.9
Highest price, EUR 2.85 2.78 2.69 2.73
Lowest price, EUR 2.25 2.13 2.25 2.24
Closing quotation, end of period, EUR 2.55 2.51 2.42 2.46
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Oriola-KD Corporation's market capitalisation on 31 March 2014 was EUR 381.5
(370.2) million.
In the review period, the traded volume of Oriola-KD Corporation shares,
excluding treasury shares, corresponded to 7.9 (5.9) per cent of the total
number of shares. The traded volume of class A shares amounted to 7.2 (1.3) per
cent of the average stock, and that of class B shares, excluding treasury
shares, to 8.2 (8.0) per cent of the average stock.
At the end of March 2014, the company had a total of 151,257,828 (151,257,828)
shares, of which 47,148,710 (47,148,710) were class A shares and 104,109,118
(104,109,118) were class B shares. The company has 115,902 (96,822) treasury
shares, all of which are class B shares. They account for 0.08 (0.06) per cent
of the company's shares and 0.011 (0.009) per cent of the votes.
Under Article 3 of the Articles of Association, a shareholder may demand
conversion of class A shares into class B shares. During the period 1 January -
31 March 2014, no class A shares were converted into class B shares (0 shares).
On 19 December 2012, Oriola-KD Corporation's Board of Directors decided on a new
share incentive scheme for the Group's senior management for the years
2013-2015. The scheme covers seven persons. The company's Board of Directors
will determine the earnings criteria for the earning period and the targets to
be set for these at the start of each earning period. The bonus for the 2014
earning period is based on the Oriola-KD Group's earnings per share (EPS). The
rewards to be paid on the basis of the performance period 2014 will correspond
to the value of a maximum total of 1,010,000 Oriola-KD Corporation class B
shares (also including the proportion to be paid in cash), of which 720,000
Oriola-KD Corporation class B shares (also including the proportion to be paid
in cash) have been allocated to the current participants.
The Board of Oriola-KD Corporation approved the terms and conditions of the key
employees' share savings plan on 28 May 2013. A total of about 50 key employees
are participating in the plan. The savings period will start on 1 October 2013
and end on 30 September 2014. The maximum and minimum monthly savings amount to
10 and 2 per cent, respectively, of each participant's fixed gross monthly
salary. The accumulated savings will be used for purchasing Oriola-KD's class B
shares for the participants at market prices. About two years after the start of
the programme, the company will give the participants two class B shares for
every three shares purchased as part of the programme. The shares given to the
participants will be partially used for paying taxes.
Liquidity guarantee
There is no liquidity guarantee in effect for the shares of Oriola-KD
Corporation.
Flagging announcements
No flagging announcements were received during the period.
Risks
Oriola-KD's Board of Directors has approved the company's risk management policy
in which the risk management operating model, principles, responsibilities and
reporting are specified. The Group's risk management seeks to identify, measure
and manage risks that may threaten Oriola-KD's operations and the achievement of
goals set. The roles and responsibilities relating to risk management have been
determined in the Group.
Oriola-KD's risks are classified as strategic, operational and financial. Risk
management is a key element of the strategic process, operational planning and
daily decision-making at Oriola-KD.
Oriola-KD has identified the following principal strategic and operational risks
in its business:
* Amendments to pharmaceutical market regulations may weaken Oriola-KD's net
sales and profitability.
* In the Swedish retail business, the free establishment of pharmacies has led
to an increase in the number of pharmacies. The number of pharmacies may
continue to grow, which could further increase the fierce competition.
* In the Russian retail business, tough competition resulting from the large
number of pharmacies may lead to a further decrease in the gross margin and
a rapid turnover rate of key personnel.
* Extra capacity ensuing from a change in the Swedish wholesale market will
intensify competition, which may weaken the profitability of operations. The
share of single channel distribution in the pharmaceutical wholesale market
may decline rapidly, which may weaken the profitability of operations and
lead to the restructuring of wholesale operations.
* As a result of the tough competition in the Russian wholesale business, the
gross margin may decline further, which will lead to a continued need to
intensify operations and restructure wholesale operations over the long
term. The payment behaviour that is typical to the Russian market, combined
with the regional expansion of operations may increase credit risks.
* Strategic development projects involve operational risks.
The main financial risks for Oriola-KD involve currency rate, liquidity,
interest rate and credit risks. Currency risks are the most significant
financial risks in Russia and Sweden, as any changes in the value of the Russian
ruble and the Swedish krona will have an impact on Oriola-KD's earnings and
equity.
Oriola-KD prepares goodwill impairment testing twice a year, in accordance with
the timetable of its strategy and planning process. Changes in cash flow
forecasts based on strategic plans, or in the discount rate or perpetuity growth
rate, can cause a goodwill write-off, which would weaken Oriola-KD's result. The
impairment test on the goodwill of the cash-generating wholesale unit in Russia
is particularly sensitive to changes in the discount rate or cash-flow
forecasts.
Near-term risks and uncertainty factors
A slowing down in the economic growth of Russia as well as the continuing
weakening of the external value of the Russian ruble may have an effect of the
net sales and profitability of the Oriola-KD Russian businesses in 2014. A
decrease in gross margin resulting from intense competition and an increase in
credit risks concerning customers may have an impact on the profitability of the
wholesale business in Russia.
Oriola-KD's strategic development projects in the Russian wholesale business and
the operations in Sweden involve operational risks which may have an effect on
Oriola-KD's profitability.
Oriola-KD's long-term financing agreement contains financial covenants
concerning the ratio between Oriola-KD's net debt and rolling 12-month EBITDA
and the group's gearing ratio. Weakening profitability of Oriola-KD's business
operations many affect Oriola-KD's ability to meet the financial covenants
contained in the financing agreement.
Outlook
Oriola-KD's outlook for 2014 is based on external market forecasts, agreements
with pharmaceutical companies and pharmacies, and management assessments. During
the five-year period from 2014-2018, the Finnish pharmaceutical market is
expected to grow at an annual rate of 1.9 per cent and decline an average of
0.2 per cent in Sweden per year while the Russian pharmaceutical market is
expected to grow by an average of almost 8.1 per cent annually in the local
currencies (source: IMS Health Prognosis 2014-2018).
Outlook for 2014
Oriola-KD estimates that net sales and operating profit excluding non-recurring
items will increase compared to 2013 actual.
Events after the review period
There were no material events after the review period.
Next interim report
Oriola-KD Corporation will publish its results for the second quarter of 2014 on
Thursday 24 July 2014 at about 8.30 am.
Oriola-KD's Interim Report for January - March 2014, unaudited
Consolidated Statement of
Comprehensive Income (IFRS), 2014 2013 2013
EUR million 1-3 1-3 1- 12
-----------------------------------------------------------
Net sales 593.9 612.3 2,598.5
Cost of goods sold -494.6 -524.9 -2,199.4
-----------------------------------------------------------
Gross profit 99.2 87.5 399.0
Other operating income 2.9 2.0 5.7
Selling and
distribution expenses -80.2 -72.0 -313.9
Administrative expenses -14.9 -15.2 -69.8
-----------------------------------------------------------
Operating Profit 7.1 2.3 21.0
Financial income 5.2 3.8 14.1
Financial expenses -8.8 -5.2 -27.7
-----------------------------------------------------------
Profit before taxes 3.5 0.9 7.4
Income taxes * -0.8 -0.3 -1.6
-----------------------------------------------------------
Profit for the period 2.6 0.7 5.8
Other comprehensive income
Items which may be reclassified
subsequently to profit or loss:
Translation difference -17.4 6.3 -29.7
Cash flow hedge -0.5 0.5 0.8
Income tax relating to
other comprehensive income 0.6 -0.2 0.3
-----------------------------------------------------------
-14.8 7.3 -22.9
Items which are not reclassified subsequently to
profit or loss:
Actuarial gains/losses on
defined benefit plan - - 5.9
Income tax relating to
other comprehensive income - - -1.3
-----------------------------------------------------------
Total comprehensive income
for the period -14.8 7.3 -18.3
Attribution of Profit for the
period
-----------------------------------------------------------
To parent company shareholders 2.6 0.7 5.8
-----------------------------------------------------------
Attribution of total comprehensive
income for the period
-----------------------------------------------------------
To parent company shareholders -14.8 7.3 -18.3
-----------------------------------------------------------
Earnings per share for the period
Basic earnings per share, EUR 0.02 0.00 0.04
Diluted earnings per share, EUR 0.02 0.00 0.04
*) The tax expense for the period corresponds to the taxes calculated from the
profit for the financial period
Consolidated Statement of Financial Position (IFRS),
EUR million
ASSETS 31 Mar 2014 31 Mar 2013 31 Dec 2013
-------------------------------------------------------------------------------
Non-current assets
Property, plant and equipment 92.0 84.8 93.2
Goodwill 365.5 283.0 379.0
Other intangible assets 69.8 52.1 72.0
Other shares and shareholdings 0.0 0.0 0.0
Pension assets 9.3 6.4 9.3
Other non-current assets 0.0 0.0 0.0
Deferred tax assets 9.3 6.5 8.3
-------------------------------------------------------------------------------
Non-current assets total 545.9 433.0 561.8
Current assets
Inventories 357.0 393.1 391.4
Trade and other receivables 324.0 348.0 337.9
Other receivables 74.4 74.4 71.8
Cash and cash equivalents 88.0 83.4 137.3
-------------------------------------------------------------------------------
Current assets total 843.3 899.0 938.3
ASSETS TOTAL 1,389.2 1,331.9 1,500.1
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
-------------------------------------------------------------------------------
Equity
Share capital 36.2 36.2 36.2
Hedging reserve -0.6 -0.3 -0.2
Contingency fund 19.4 19.4 19.4
Hybrid bond 39.7 - -
Other reserves 1.2 1.2 1.2
Other equity 207.1 247.7 221.5
-------------------------------------------------------------------------------
Equity of the parent company shareholders 303.0 304.2 278.1
Non-current liabilities
Deferred tax liabilities 17.3 14.2 17.7
Pension obligations 7.5 10.0 7.6
Borrowings 174.9 0.4 176.2
Other non-current liabilities 0.0 0.5 0.3
-------------------------------------------------------------------------------
Non-current liabilities total 199.7 25.1 201.7
Current liabilities
Trade payables and other current
liabilities 799.3 881.1 874.7
Provisions 1.5 - 3.0
Borrowings 85.6 121.5 142.6
-------------------------------------------------------------------------------
Current liabilities total 886.5 1,002.6 1,020.3
EQUITY AND LIABILITIES TOTAL 1,389.2 1,331.9 1,500.1
-------------------------------------------------------------------------------
Consolidated Statement of Changes
in Equity (IFRS)
Equity of the parent company
shareholders
Trans- Re-
lation tained
Share diffe- earn- Hybrid Equity
EUR million capital Funds rences ings bond total
-------------------------------------------------------------------------------
Equity
31 Dec 2012 36.2 26.0 3.9 248.9 - 314.9
-------------------------------------------------------------------------------
Change in accounting
policy (IAS19) - - 0.0 -4.3 - -4.4
-------------------------------------------------------------------------------
Equity, revised*
1 Jan 2013 36.2 26.0 3.8 244.5 - 310.5
-------------------------------------------------------------------------------
Comprehensive income for
the period
Net profit for the
period - - - 0.7 - 0.7
Other comprehensive
income:
Cash flow hedge - 0.5 - - - 0.5
Actuarial gains and
losses - - - - - -
Income tax relating
to
other comprehensive
income - -0.1 -0.1 - - -0.2
Translation
difference - 0.0 6.3 - - 6.3
-------------------------------------------------------------------------------
Comprehensive income for
the period total - 0.4 6.2 0.7 - 7.3
-------------------------------------------------------------------------------
Owners-related
transactions
Dividends paid and
repayment of equity - -6.0 - -7.6 - -13.6
Share-based payments - - - 0.0 - 0.0
Purchase of treasury
shares - - - - - -
-------------------------------------------------------------------------------
Owners-related
transactions total - -6.0 - -7.5 - -13.6
-------------------------------------------------------------------------------
Equity
31 Mar 2013 36.2 20.3 10.0 237.7 - 304.2
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity
1 Jan 2014 36.2 20.4 -25.3 246.8 - 278.1
-------------------------------------------------------------------------------
Comprehensive income for
the period
Net profit for the
period - - - 2.6 - 2.6
Other comprehensive
income:
Cash flow hedge - -0.5 - - - -0.5
Actuarial gains and
losses - - - - - -
Income tax relating
to
other comprehensive
income - 0.1 0.4 - - 0.6
Translation
difference - -0.0 -17.4 - - -17.4
-------------------------------------------------------------------------------
Comprehensive income for
the period total - -0.4 -17.0 2.6 - -14.8
-------------------------------------------------------------------------------
Owners-related
transactions
Hybrid bond - - - - 39.7 39.7
Dividends paid and
return of equity - - - - - -
Share-based incentive - - - 0.0 - 0.0
Purchase of own shares - - - - - -
-------------------------------------------------------------------------------
Owners-related
transactions total - - - 0.0 39.7 39.7
-------------------------------------------------------------------------------
Equity
31 Mar 2014 36.2 20.0 -42.3 249.4 39.7 303.0
-------------------------------------------------------------------------------
Comprised Consolidated Statement of Cash Flows (IFRS),
EUR million
2014 2013 2013
1-3 1-3 1- 12
-------------------------------------------------------------------
Operating profit 7.1 2.3 21.0
Depreciation 6.6 5.1 25.7
Change in working capital -32.5 -30.6 3.5
Cash flow from financial
items and taxes -5.3 -1.8 -13.8
Other adjustments -1.7 -1.1 -6.7
-------------------------------------------------------------------
Net cash flow from operating activities -25.8 -26.1 29.8
Net cash flow from investing activities -4.9 -6.0 -97.8
Net cash flow from financing activities -17.4 27.2 118.4
Net change in cash and cash equivalents -48.0 -4.9 50.4
Cash and cash equivalents
at the beginning of the period 137.3 88.1 88.1
Foreign exchange rate differences -1.3 0.2 -1.2
Net change in cash and cash equivalents -48.0 -4.9 50.4
-------------------------------------------------------------------
Cash and cash equivalents
at the end of the period 88.0 83.4 137.3
-------------------------------------------------------------------
Principal accounting policies as of 1 January 2014 (IFRS)
This interim report has been prepared in accordance with IFRS standards (IAS
34). The accounting policies and calculation methods applied in the interim
report are the same as those in the 31 December 2013 annual financial
statements, excluding the standards and interpretation applied as of 1 January
2014 and presented below. However, the interim report does not include all of
the information and notes present in the annual financial statements.
Consequently, the interim report should be read with the company's financial
statements for 2013. The accounting policies of the 2013 and 2014 financial
years are comparable. The company has no discontinued operations in 2013 or
2014 that it should report.
The calculation principles of key figures in this interim report are the same as
for the annual financial statements, except for the calculation of earnings per
share (EPS) whereby the profit attributable to equity owners of the parent has
been adjusted with the unpaid hybrid loan interest.
The figures in the interim report have been rounded independently.
New standards or amendments to the existing ones that have been applied as of 1
January 2014:
* IFRS 10 Consolidated Financial Statements
* IFRS 11 Joint Arrangements
* IFRS 12 Disclosure of Interests in Other Entities
* IAS 27 (revised in 2011) Separate Financial Statements
* IAS 28 (revised in 2011) Investments in Associates
The new standards have not had a material impact on the Group's financial
position.
On 20 February 2014 Oriola-KD issued a hybrid bond, classified as equity.
Interest on the hybrid bond is paid in accordance with a decision made by the
Board of Directors. Unpaid interest is accrued and reported on the balance sheet
upon the interest payment decision. Unpaid interest is taken into consideration
in the calculation of earnings per share.
Reporting segment results reported to Oriola-KD management exclude the
management fee. Segment information for 2013 has been revised to correspond with
the current presentation.
The figures in this interim review are unaudited.
Earnings per share
2014 2013 2013
EUR million 1-3 1-3 1- 12
---------------------------------------------------------------------------
Profit attributable to equity owners of the parent 2.6 0.7 5.8
Accumulated interest on hybrid bond -0.3 - -
---------------------------------------------------------------------------
Adjusted profit for the period 2.3 0.7 5.8
Average number of outstanding shares (1000 shares)
Basic 151,142 151,161 151,157
Diliuted 151,142 151,161 151,157
Earnings per share (EUR)
Basic 0,02 0,00 0,04
Diliuted 0,02 0,00 0,04
Changes in Property, Plant and Equipment, 2014 2013 2013
EUR million 1-3 1-3 1- 12
--------------------------------------------------------------------
Carrying amount at the beginning of the period 93.2 81.4 81.4
Increases through acquisitions of subsidiary shares - - 8.0
Increases 2.9 5.1 22.4
Decreases -0.1 -0.1 -1.4
Reclassifications 0.7 - -
Other changes 0.4 - -
Depreciation -3.9 -3.0 -14.8
Foreign exchange rate differences -1.0 1.6 -2.4
--------------------------------------------------------------------
Carrying amount at the end of the period 92.0 84.8 93.2
--------------------------------------------------------------------
Derivatives
31 Mar 2014 Positive fair Negative fair Nominal values of
EUR million value value contracts
-------------------------------------------------------------------------------
Derivatives recognised
as cash flow hedges
Interest rate swaps - -0.8 44.7
Derivatives measured at
fair value through profit and
loss
Foreign currency forward and
swap contracts 0.7 - 115.2
-------------------------------------------------------------------------------
31 Mar 2013 Positive fair Negative fair Nominal values of
EUR million value value contracts
-------------------------------------------------------------------------------
Derivatives recognised
as cash flow hedges
Interest rate swaps - -0.5 47.9
Derivatives measured at
fair value through profit and
loss
Foreign currency forward and
swap contracts - -1.4 142.9
-------------------------------------------------------------------------------
Derivatives measured at fair value through profit and loss are mainly related to
hedging of group's internal transactions. Fair values of the derivatives have
been booked to balance sheet in gross amount as the derivatives contracts are
related to credit events and cannot be netted in financial statements. The group
has not given nor received collateral to/from derivatives counterparties.
Fair value hierarchy
EUR million
31 Mar 2014 Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------
Assets
Derivatives measured at fair value through
profit and loss - 0.9 - 0.9
Liabilities
Derivatives designated as
hedges - 0.8 - 0.8
Derivatives measured at fair value through
profit and loss - 0.2 - 0.2
Contingent consideration - - 14.7 14.7
-------------------------------------------------------------------------------
EUR million
31 Mar 2013 Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------
Assets
Derivatives measured at fair value through
profit and loss - 0.1 - 0.1
Liabilities
Derivatives designated as
hedges - 1.5 - 1.5
Derivatives measured at fair value through
profit and loss - 0.5 - 0.5
-------------------------------------------------------------------------------
Level 1: Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).
Reconciliation of financial liabilities recognised at fair value through
profit and loss according to the level 3 in the year 2014
EUR million
-------------------------------------
Carrying amount 31 Dec 2013 14.6
-------------------------------------
Bookings to financial expenses 0.1
-------------------------------------
Carrying amount 31 Mar 2014 14.7
-------------------------------------
Financial liabilities recognised at fair value through profit and loss (level
3) include estimated discounted fair value of a contingent consideration related
to the Medstop acquisition. Payment of the contingent consideration will be
based on 2015 EBITDA of Oriola-KD's combined Swedish retail businesses and will
be paid in first quarter of 2016. The fair value of the contingent consideration
has been calculated using discounted cash flow method. The discount rate used in
the valuation is determined using the weighted average cost of capital of the
Group.
Commitments and Contingent Liabilities
Contingencies for Own Liabilities
EUR million 31 Mar 2014 31 Mar 2013 31 Dec 2013
-------------------------------------------------------------------------------
Guarantees given 16.0 19.1 21.3
Mortgages on land and buildings - - -
Mortgages on company assets 2.3 2.5 2.4
Other guarantees and liabilities 0.9 0.8 0.9
Accumulated interest on hybrid bond 0.3 - -
-------------------------------------------------------------------------------
Total 19.5 22.5 24.6
-------------------------------------------------------------------------------
Leasing liabilities (operating
liabilities) 2.8 2.4 2.6
Rent liabilities 72.7 66.9 77.0
The most significant guarantees are bank guarantees against trade payables in
wholesale companies in Russia and Sweden. In addition, Oriola-KD Corporation has
granted parent company guarantees of EUR 24.4 (27.0) million against
subsidiaries' trade payables and EUR 151.9 (-) million against Oriola-KD
Holding Sverige AB's external loan.
Provisions
On 31 March 2014 Oriola-KD had restructuring provisions totalling EUR 1.5 (-)
million related to restructuring costs incurred by Pharmaceutical Trade Sweden
in connection with the integration of the Medstop acquisition and an efficiency
program as well as by Pharmaceutical Trade Russia in connection with a
profitability improvement program.
Related parties
Related parties in the Oriola-KD Group are deemed to comprise the members of the
Board of Directors and the President and CEO of Oriola-KD Corporation, the other
members of the Group Management Team of the Oriola-KD Group, the immediate
family of the aforementioned persons, the companies controlled by the
aforementioned persons, and the Oriola Pension Fund. The Group has no
significant business transactions with related parties, except for pension
expenses arising from defined benefit plans with the Oriola Pension Fund.
2014 2013 2013
Net Sales, EUR million 1-3 1-3 1- 12
----------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 100.8 107.5 425.3
Pharmaceutical Trade Sweden 298.5 273.7 1,194.4
Pharmaceutical Trade Russia 194.6 231.1 978.8
Net sales to other segments -0.0 -0.0 -0.0
----------------------------------------------------------------
Group total 593.9 612.3 2,598.5
2014 2013 2013
Operating Profit, EUR million 1-3 1-3 1- 12
----------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 4.2 18.8
Pharmaceutical Trade Sweden 9.4 3.2 16.4
Pharmaceutical Trade Russia -5.8 -3.6 -8.3
Group Administration and Others -1.3 -1.4 -5.9
----------------------------------------------------------------
Group total 7.1 2.3 21.0
Operating Profit excl. Non-recurring items, 2014 2013 2013
EUR million 1-3 1-3 1- 12
----------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 4.2 18.8
Pharmaceutical Trade Sweden 10.0 3.2 24.1
Pharmaceutical Trade Russia -5.4 -3.6 -8.0
Group Administration and Others -1.3 -1.4 -5.9
----------------------------------------------------------------
Operating Profit excl. Non recurring items 8.1 2.3 29.0
----------------------------------------------------------------
Non-recurring items * -1.0 - -8.0
----------------------------------------------------------------
Group total 7.1 2.3 21.0
2014 2013 2013 2013 2013
Quarterly Net Sales, EUR million 1-3 10-12 7-9 4-6 1-3
----------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 100.8 109.4 96.0 112.5 107.5
Pharmaceutical Trade Sweden 298.5 300.5 315.7 304.5 273.7
Pharmaceutical Trade Russia 194.6 269.8 242.7 235.2 231.1
Net sales to other segments -0.0 -0.0 0.0 -0.0 -0.0
----------------------------------------------------------------------
Group total 593.9 679.6 654.4 652.1 612.3
2014 2013 2013 2013 2013
Quarterly Operating Profit, EUR million 1-3 10-12 7-9 4-6 1-3
----------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 4.2 5.3 5.2 4.2
Pharmaceutical Trade Sweden 9.4 6.2 6.2 0.8 3.2
Pharmaceutical Trade Russia -5.8 0.5 -1.9 -3.4 -3.6
Group Administration and Others -1.3 -0.5 -1.0 -3.0 -1.4
----------------------------------------------------------------------
Group total 7.1 10.4 8.6 -0.3 2.3
Quarterly Operating Profit, 2014 2013 2013 2013 2013
excl. Non-recurring items, EUR million 1-3 10-12 7-9 4-6 1-3
----------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 4.2 5.3 5.2 4.2
Pharmaceutical Trade Sweden 10.0 7.9 8.2 4.9 3.2
Pharmaceutical Trade Russia -5.4 0.8 -1.9 -3.4 -3.6
Group Administration and Others -1.3 -0.5 -1.0 -3.0 -1.4
----------------------------------------------------------------------
Group total excl. Non-recurring items 8.1 12.4 10.6 3.7 2.3
----------------------------------------------------------------------
Non-recurring items * -1.0 -2.0 -2.0 -4.0 -
----------------------------------------------------------------------
Group total 7.1 10.4 8.6 -0.3 2.3
Net Sales by Market, EUR million 2014 2013 2013
1-3 1-3 1- 12
----------------------------------------------------------------
Finland 89.2 96.8 382.9
Sweden 284.4 259.0 1,135.0
Russia 194.6 231.1 978.8
Baltic countries 10.9 10.0 38.8
Other countries 14.8 15.4 63.0
----------------------------------------------------------------
Group total 593.9 612.3 2,598.5
Quarterly Net Sales by Market, EUR million 2014 2013 2013 2013 2013
1-3 10-12 7-9 4-6 1-3
---------------------------------------------------------------------------
Finland 89.2 98.2 85.3 102.5 96.8
Sweden 284.4 283.0 303.5 289.5 259.0
Russia 194.6 269.8 242.7 235.2 231.1
Baltic countries 10.9 10.0 9.1 9.6 10.0
Other countries 14.8 18.7 13.7 15.3 15.4
---------------------------------------------------------------------------
Group total 593.9 679.6 654.4 652.1 612.3
Espoo, 24 April 2014
Board of Directors of Oriola-KD Corporation
Further information:
Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com
Tuomas Itkonen
CFO
tel. +358 (0)40 5964 004
e-mail: tuomas.itkonen@oriola-kd.com
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
02200 Espoo
www.oriola-kd.com
[HUG#1779236]
